Dec 17 (Reuters) - Slater & Gordon Ltd SGH.AX :
* 2016 financial year update SGH.AX
* Says there is a significant risk that full year guidance will not be met
* Says company expects that the UK business will make a positive contribution to gross operating cash flow in December
* Says company withdraws its previous full year guidance
* Says withdrawal of guidance reflects the fact that whilst cases remain available for settlement in the second half
* Performance of UK business expected to contribute positively to cash flow in December and during the remainder of the financial year
* Has more than A$100 million headroom within its banking facilities
* Says company will test its goodwill values for impairment of the UK business at the half year ending 31 December 2015
* Headroom is expected to increase as the financial year progresses"
* Impairment review will take into account matters including risks associated with proposed changes to law by the UK government which may not be enacted either in current form or at all"
* Says any impairment will not impact cash flow from operations but will impact statutory profit
* Says UK operations during the first half has not been in line with our expectations
* Source text for Eikon ID:nASX1ktNgB